Delivery and takeaway sales fall year-on-year

Delivery and takeaway sales at Britain’s managed restaurant and pub groups are falling from the peaks of Covid-19 lockdowns, as combined sales in May 2022 were 29% below the level of May 2021.

According to the CGA by NielsenIQ and Slerp Hospitality at Home Tracker, this marks the fifth month in a row this year that sales have been below the corresponding period of 2021, when eating and drinking out was heavily restricted and consumers were spending more time at home.

However, the tracker also shows that sales remain “well above” pre-pandemic levels, with growth of 107% compared to May 2019. Delivery sales were also 315% higher than three years ago, while takeaway and click-and-collect sales were up by 22%.

Combined, they accounted for nearly 25 pence in every pound spent with the managed groups participating in the tracker in May.

Karl Chessell, CGA’s business unit director for hospitality operators and food, EMEA, said: “After flourishing during the lockdowns of 2020 and 2021, the delivery and takeaway sector has inevitably settled down as consumers go out to eat again.

“Nevertheless, our tracker shows the market is more than twice the size it was just three years ago, and it now accounts for a quarter of managed groups’ trading. As the third-party delivery market matures, optimising sales and profits in it without compromising core eat-in business is crucial.”

JP Then, Slerp founder, added: “We are now getting better visibility as to what a post-pandemic new normal looks like and it’s clear that takeaway and delivery are an important aspect of the channel mix, representing a quarter of revenues.

“Operators are looking closely at the margins and investing into the channels that enable them to operate effectively, and provide consumers with enough bang for their buck. Establishing a direct online ordering channel with a unique proposition remains key to capturing discretionary consumer spend.”